B2B2C business model in Lending
Running a successful business is no easy feat, and there are many factors that
can hinder its success. In the lending industry, this is especially true, with a
crowded market and ever-changing customer expectations. To maintain a
competitive edge and continuously grow, businesses must explore innovative
solutions and models that can help them acquire new customers in a sustainable
and scalable way.
B2B (business-to-business) and B2C (business-to-consumer) are two common models
used to describe how companies sell their products or services. B2B refers to a
model where businesses sell their products or services to other businesses. In
terms of lending, this could mean that a lending company provides their lending
solutions to other businesses, such as banks or financial institutions, who then
offer those solutions to their customers (individual borrowers). This model is
popular in the tech industry, where companies offer software or other tech
solutions to help businesses improve their operations or infrastructure. Custom
solutions tailored to individual business needs are also common in the B2B tech
space.
On the other hand, B2C refers to a business strategy where companies sell their
goods or services directly to individual customers. In terms of lending, this
could mean that a lending company provides their lending solutions directly to
individual borrowers, without the involvement of any other business. Businesses
that use the B2C model prioritize creating products that are easy to use,
feature appealing design and marketing, and gather customer data to enhance
their offerings.
What is B2B2C Business Model?
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Now, let's talk about the B2B2C model in the lending industry. This
model involves lending companies collaborating with other businesses
(B2B) to offer their lending solutions to individual borrowers (B2C).
For example, a lending company may partner with a provider to offer
lending solutions to its customers. The provider benefits from offering
additional lending services to their customers, improving their customer
experience and loyalty, while the lending company benefits from reaching
a larger customer base and reducing operational costs and risk.
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The B2B2C lending model can also help lending companies develop more
innovative lending solutions, knowing that their partner businesses are
responsible for delivering those solutions to their customers. This
allows lending companies to focus on their core competencies and choose
efficient product development solutions catering to that specific niche
while leveraging their partner businesses' existing customer base and
marketing efforts.
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Furthermore, the B2B2C lending model can help to reduce operational
costs and risk for the lending company, as it doesn't have to directly
manage customer relationships or marketing activities. It also enables
lending companies to focus on developing/ sourcing innovative lending
solutions and improving their services, knowing that their partner
businesses are responsible for delivering those services to their
customers.
How do lenders use the B2B2C model to enrich provider's and borrower's
experiences?
For providers:
- The lenders provide providers with the opportunity of increasing the
purchasing power for the customers by catering to the customer base who
require loans right from the provider's portal for convenience
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Providers get a boost of sales through lenders by adding a lending
feature as a form of payment, but they are liable to limited risk as the
lender is responsible for the background check, KYC, and underwriting
and bares all the risk if the loan isn't repaid leaving provider with
higher sales and minimal/no risk.
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Loan finance process options can be quickly and easily integrated into a
provider's existing checkout process. The lender takes care of the
complex backend processing and approvals as the provider acts as an
intermediary.
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Lender typically offers a user-friendly interface that is easy to
navigate and understand for both the provider and the consumer. The
interface can also be customized to fit the look and feel of the
provider's website or app.
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The lender minimizes/eliminates the need for the provider to employ
staff to manage financing operations. This saves time and money, as the
third-party provider takes care of all the backend processes, from
processing applications to manage repayments.
For borrowers:
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A B2B2C lending model can help the borrowers in reducing the middleman
and directly apply for a loan and choose the provider of the service/
product or choose the provider and directly seek a loan through them.
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The lenders make the entire process too efficient and easy for borrowers
which saves them time and resources. No more waiting in lines for hours
or submitting hundreds of documents with the aspiration to get your loan
approved.
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Instead of waiting for days to get your loan to process and verify your
profile, lenders with digital solutions make the decision in a few
seconds.
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A seamless lending process can offer customers greater flexibility in
terms of loan amounts, repayment terms, and other features. This means
that customers can find a financing solution that meets their specific
needs and budget.
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Lenders provide customers with greater transparency in terms of fees,
interest rates, and repayment schedules. This allows customers to make
informed decisions about their financing options and avoid hidden or
unexpected costs.
How do you start with your B2B2C lending business?
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At theecode, we recognize the potential of the B2B2C lending model and
offer solutions that can help lenders succeed in this space. We provide
lenders with a specialized lending platform that can be customized to
meet their business clients' and end consumers' specific needs.
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Our product enables lenders to offer loans or credit to businesses, who
in turn can use the funds to offer loans or credit to their customers.
This enables businesses to offer financing options to their customers,
thereby improving customer loyalty and increasing sales.
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In addition, theecode provides lenders with data analytics tools to help
them assess the creditworthiness of potential borrowers and make
informed lending decisions. This can help lenders mitigate risks
associated with lending to businesses and consumers. Theecode simplifies
the process of reporting and analyzing loan applications for lenders,
providers, and borrowers by providing comprehensive information that is
easily accessible and organized, facilitating documentation and
tracking.
“One size doesn't fit all.”
At Theecode we have a hybrid approach to this famous saying and which is why we
are among the leading Hybrid SaaS lending solution providers. We offer specific
solution products tailored to your niche while also constructing a common
sandbox that seamlessly fits into the vertical. We have identified several top
verticals with outstanding lending opportunities and developed a customized,
free-to-access sandbox for you to test before committing to the lending
business.
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Automobiles lending solutions
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The automotive industry is experiencing a significant shift in
revenue streams, with on-demand mobility services and data-driven
services diversifying the market and creating new opportunities.
This change could generate up to $1.5 trillion in additional revenue
potential in 2030, representing a 30% increase from traditional car
sales and aftermarket products/services. The growing demand for
electric vehicles is also contributing to the expansion of the
global automotive finance market, which was valued at USD 259.84
billion in 2022 and is expected to register a compound annual growth
rate (CAGR) of 7.3% from 2023 to 2030.
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However, for many individuals, the traditional lending process can
be a barrier to owning a car. The tedious paperwork, collateral
requirements, lengthy loan approval times, and high-interest rates
can make the process overwhelming and take away from the joy of this
significant milestone. In the US, Experian's State of the Automotive
Finance report highlights that the growing demand for electric
vehicles is driving market growth, with new electric vehicle
financing increasing from 1.34% in Q4 2019 to 4.56% in Q4 2021.
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At Theecode, we understand that owning a vehicle is more than just
transportation; it's a symbol of your achievements and a lifelong
dream for many. That's why we offer hassle-free lending solutions to
lenders that make it easier for borrowers to purchase the vehicle
they want.
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Our technology solution for lenders provides efficient auto
financing, prioritizing convenience. We streamline the lending
process, allowing borrowers to apply for loans, receive offers
within seconds, and sign documents digitally. Lenders disburse funds
to providers, and borrowers pay back loans in instalments with
interest to lenders. With us, one can experience the joy of owning a
vehicle without the stress of a complicated lending process.
- Theecode makes a B2B2C model in automobile lending a WIN- WIN
-WIN model.
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Healthcare lending solutions.
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We've all heard the saying "Health is Wealth," but sometimes
unforeseen accidents or a lack of prioritization can leave us in a
situation where we require medical attention. However, medical bills
can be exorbitant, and while medical insurance covers many essential
health alignments, it may not cover certain clinical surgeries like
dental, plastic, eye, cosmetics etc.
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Overall, the healthcare industry is expected to reach $11.9 trillion
by 2025, and healthcare lending is a critical component of this
growth. The global healthcare lending market is projected to reach
$372.7 billion by 2028. Healthcare lending enables patients to
access medical treatments they might not have been able to afford
otherwise, and partnering with lenders can help healthcare providers
drive revenue growth and improve patient outcomes.
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Theecode offers a customized solution for healthcare providers that
allows them to offer on-site loan applications to patients, which
can be approved and processed within minutes. This helps patients
afford necessary medical treatments and can increase sales for
healthcare professionals, while also allowing lenders to expand
their customer base and disburse more loans.
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Our product offers user portals for lenders, providers, and
borrowers, loan dispersal methods, and loan initialization, with a
health vertical sandbox that provides free access to explore lending
in the health domain. Our solution is designed to provide a
streamlined and convenient lending process, benefiting all parties
involved.
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Solar installation lending solutions
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In 2021, the global solar energy systems market size was valued at
USD 160.3 billion. It is expected to grow at a compound annual
growth rate (CAGR) of 15.7% from 2022 to 2030.
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The increasing use of solar panels in the European region,
particularly in countries like Spain and Italy, which receive
maximum sunlight exposure throughout the year, is expected to drive
the market. The U.S. emerged as the largest market for solar PV
panels in North America in 2021.
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These numeric data points highlight the significant growth potential
of the solar energy market, particularly in the coming years. As the
demand for sustainable energy production sources continues to grow,
so does the demand for solar energy systems and solar PV panels. The
declining costs of solar energy systems, combined with their
competitive nature in the energy generation industry, are further
fueling this growth.
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At Theecode, we are dedicated to crafting a streamlined B2B2C
process that delivers lenders an exceptional and seamless interface,
connecting all involved parties. Our state-of-the-art technology
solutions facilitate solar installation providers to extend loans to
their customers, thereby boosting their sales and promoting
environmental sustainability. Simultaneously, our platform is
designed to provide borrowers with a hassle-free and expeditious
loan application process, which instils confidence and enables them
to make a smooth transition to solar power. We take pride in
offering customized solar lending solutions that are efficient and
user-friendly for all stakeholders involved.
Conclusion:
The 3 verticals, Automobiles, healthcare and solar installations can make a
breakthrough in the lending industry, especially with its B2B2C model. Just like
in B2B, this model allows for specialization by targeting providers and
leverages the benefits of B2C to build a loyal customer base. If you're hesitant
about taking a big step into this business, you can take advantage of our
Embedded Lending Framework for free and explore your expertise in these
verticals in just 60 seconds.
“Unleash the potential of your business with B2B2C - the ultimate fusion of B2B
and B2C models.”
2023-04-04
